India’s gross domestic product (GDP) grew by 5.4 per cent in the December quarter of the current fiscal (2021-22), lower than 8.4 per cent growth seen in the September quarter. However, it was much higher than 0.5 per cent growth which was witnessed in the corresponding period (October-December) of the previous fiscal (2020-21).
The growth in the October-December quarter is lower than the previous quarter (July-September) basically due to fall in growth of sectors like agriculture, mining, manufacturing, transport and construction during the period under review, according to data released by the ministry of statistics and programme implementation.
In fact the construction sector witnessed a sharp dip in growth and went into negative territory, clocking -2.8 per cent in the third quarter of current financial year. In the second quarter of current fiscal, it had registered a growth of 8.2 per cent
In the first quarter of the current fiscal, the economic growth had been a stupendous 20.1 per cent, which however was mainly due to the low base effect.
In its second advance estimates of national accounts, the National Statistical Office (NSO) has projected 8.9 per cent growth in 2021-22, which is lower than its first advance estimates released in January. At that time, NSO had projected 9.2 per cent growth for 2021-22 as against a contraction of 6.6 per cent in 2020-21.
However this is the fifth consecutive quarter when there has been a positive growth in GDP. The economy had grown by 0.5 per cent in the third quarter of 2020-21, 1.6 per cent in the fourth quarter of 2020-21, 20.1 per cent in the first quarter of 2021-22 and 8.4 per cent in the second quarter of the current fiscal.
In the first two quarters of 2020-21, the growth was -24.4 per cent and -7.4 per cent respectively, as the country was under complete lockdown due to the outbreak of the Coronavirus pandemic and all economic activities had come to a halt.
Gradually after restrictions were lifted and the festival season related activities started from October 2020 onwards, the third and fourth quarters showed meagre but positive growth.